The trio drank alcohol beyond the agreed time before a training-free day. There was no illegal behaviour, damage or complaints, but the decision was made to uphold the team's internal standards and practices.
Coach Dave Rennie explained the stance in a statement.
"We are building a culture of working hard for each other and being accountable for our actions.
"On this occasion, these three players haven't lived up to that, and we have a very clear stance.
"Ultimately, these three men have paid a big price for their decisions, but that's the standard we expect of each other," he said.
Rennie then explained that the team was angered by the players' actions when they were preparing to break their Eden Park and Bledisloe Cup droughts.
"We've got a big squad here – 42 players. Thirty-nine understood the importance of getting together and getting connected and having a quiet beer, and three guys lacked the discipline beyond that.
"We've stated the importance of our preparation for the All Blacks. We all need to be at our best to try and force the All Blacks to be below their best," he said.
"This obviously didn't fit with their mindset."
Rennie said he was 'incredibly' disappointed and there was a big group in the team who were angry.
Rugby Australia chief executive Andy Marinos backed the team stance.
"As an organisation, we expect the highest standards at all times. While we also acknowledge that this is a minor incident, I applaud Dave and the team for taking such an open and transparent approach," he said.